Microbix Reports Results for Q3 Fiscal 2025

Executive Summary

• Microbix Biosystems Inc. reported disappointing financial results for the third quarter and nine months of fiscal 2025 ended June 30, 2025, driven by a cancellation of test-development programs by a key customer and a decline in sales to China.
• The company reported a net loss of $1.64 million for Q3 and a net loss of $765,150 for the year-to-date period, contrasting with net income in the prior year periods.
• While YTD antigen revenues grew by 11%, overall YTD revenue decreased by 22% due to a 25% drop in QAPs revenues and the absence of Kinlytic licensing revenue.

Key Details

• Q3 Revenue: $3,472,182, a 31% decrease from $5,059,465 in Q3 2024.
• Q3 Net Loss: $1,642,776, compared to a net income of $246,746 in Q3 2024.
• YTD Revenue: $14,841,048, a 22% decrease from $19,100,251 in YTD 2024.
• YTD Net Loss: $765,150, compared to a net income of $3,079,855 in YTD 2024.
• Q3 Antigen Revenue: $1,832,134 (down 44% from $3,276,469 in Q3 2024), attributed to fewer respiratory infections in China.
• Q3 QAPs Revenue: $1,516,344 (down 9% from $1,669,653 in Q3 2024), due to the cancellation of test-development programs by a key customer.
• Q3 Gross Margin: 41%, down from 54% in Q3 2024, driven by less favorable product mix and fixed manufacturing costs.
• YTD Antigen Revenue: $10,416,424 (up 11% from $9,341,607 in YTD 2024).
• YTD QAPs Revenue: $4,007,645 (down 25% from $5,317,486 in YTD 2024).
• YTD Gross Margin: 56%, down from 63% in YTD 2024.
• Cash Position: Cash and equivalents remained strong at $12.1 million as of June 30, 2025.
• Operating Cash Flow (Q3): Cash used was $1,923,694, compared to cash provided of $604,064 in Q3 2024.
• Operating Cash Flow (YTD): Cash used was $164,240, compared to cash provided of $3,581,689 in YTD 2024.
• Balance Sheet Metrics: Current ratio improved to 9.73 (from 7.15 in Q3 2024); Debt to equity ratio improved to 0.30 (from 0.35 in Q3 2024).
• EPS (Q3): Basic and diluted EPS were $(0.012), compared to $0.002 in Q3 2024.
• EPS (YTD): Basic and diluted EPS were $(0.005), compared to $0.023 and $0.022 respectively in YTD 2024.
• Corporate Outlook: Management maintains a guarded outlook for the remainder of fiscal 2025, primarily due to reduced sales into China.

Notable Quotes

• "Results for Q3 were disappointing, impacted by two key events, cancellation of test-development programs by a key customer and the decline in sales to China."
• "Management’s outlook for the remainder of fiscal 2025 continues to be more guarded, mainly due to reduced sales into China."